IVRCL dips as Essel not to make Open Offer

Subhas Chandra-promoted Essel Group says it doesn't intend to raise its holding in IVRCL

Shares of IVRCL Group companies such as IVRCL, Hindustan Dorr-Oliver, and IVRCL Assets and Holdings are under pressure and trading lower by 7% on reports that Subhash Chandra promoted Essel Group said it doesn’t intend to raise its equity holding in infrastructure company IVRCL Ltd.

Most of these stocks have rallied between 24-50% since the Essel Group bought a 10.2% stake in Hyderabad-based IVRCL on March 27 through open market purchase.

“At present, there is no intent of Essel to increase [its] stake in the company by way of an open offer or through the open market," Essel said in a statement.

Essel Group holds a 12.27% stake in IVRCL, while IVRCL’s founders hold around 11.2% of the company.

Among the individual stocks, Hindustan Dorr-Oliver and IVRCL Assets and Holdings have frozen lower limit of circuit filter of 10% and 5% respectively, while IVRCL is trading down 7% at Rs 67.85 on the Bombay Stock Exchange.